Toyota says Tundra making money

[regfootball]

Toyota says Tundra making money despite discounting

http://www.reuters.com/article/marketsNews...mp;pageNumber=1

By Kevin Krolicki

NEW YORK, Sept 10 (Reuters) - Toyota Motor Corp (7203.T: Quote, Profile, Research) is making money on its Tundra truck even though it has been forced to offer uncharacteristic incentives to win over customers for the all-new full-size pickup, the automaker's North American sales chief said on Monday.

Jim Lentz, executive vice president for Toyota's U.S. sales unit, said the Japanese automaker was on track to sell 200,000 Tundras in the truck's first year on the market, meeting the company's initial sales forecast in the face of an escalating price war with competing brands.

Even after discounting, the average sales price on the Tundra remains higher than the model it replaced, Lentz told reporters and financial analysts. "We are making money on the truck," he said, declining to be more specific about the vehicle's profit margin.

clearly, they are just buying share

Edited September 16, 2007 by regfootball

[CARBIZ]

It's interesting how you have to read to the very end of the piece to get anything that actually resembles research and is not just another Toyota press release. I would have hoped for some proof with figures that Toyota is on track to selling 200k of these turds. Last I heard they were only projected to hit 150k this model year.

Anyone out there have more up to date information, since Reuters obviously can't be bothered to look it up?

[Dsuupr]

With enough incentives they could sell as many as they want. Just wait, next month they are going to have "special" tundra pricing.

Their ad will read something like this;

Buy a tundra for the previous price of an echo because the gas mileage on the tundra is so bad we can't give them away.

or

Buy a tundra for the prvious price on an echo and we will throw in 3 recalls at no charge!

Edited September 16, 2007 by Dsuupr

[enzl]

It's interesting how you have to read to the very end of the piece to get anything that actually resembles research and is not just another Toyota press release. I would have hoped for some proof with figures that Toyota is on track to selling 200k of these turds. Last I heard they were only projected to hit 150k this model year.

Anyone out there have more up to date information, since Reuters obviously can't be bothered to look it up?

They'll only sell a little less than 200K Tundras this year, however, a current 18K/mo. sell rate means that their 'target' of 200k annually is being met at this point in time. Check Automotive News, they usually have latest figures available.

[CARBIZ]

With enough incentives they could sell as many as they want. Just wait, next month they are going to have "special" tundra pricing.

Their ad will read something like this;

Buy a tundra for the previous price of an echo because the gas mileage on the tundra is so bad we can't give them away.

or

Buy a tundra for the prvious price on an echo and we will throw in 3 recalls at no charge!

...and won't the clowns who paid full list 6 months ago feel stupid? Could this be the beginning of the end for Toyota? For shame! What will this discounting do to the Throne of Resale?

Oh, that's right, the usual pundits will just find ways to spin it and justify any prices that Japan Inc shoves down our throats.

[Camino LS6]

Spin,spin,spin

[K.C.]

It's interesting how you have to read to the very end of the piece to get anything that actually resembles research and is not just another Toyota press release. I would have hoped for some proof with figures that Toyota is on track to selling 200k of these turds. Last I heard they were only projected to hit 150k this model year.

Anyone out there have more up to date information, since Reuters obviously can't be bothered to look it up?

I've noticed that too. It's very similar to a Wal-Mart press release. I've always said that Toyota is the Wal-Mart of car companies.

[gm4life]

Well, they still are ugly. And what will they do next year to move them. At some point they will loose money.

[grandmarquis]

Nothing like a little creative bookkeeping...

[Northstar]

I saw an ad from the local Toyota dealership today for an SR5 Tundra for $20995. That's $9k off!

[Sixty8panther]

I've noticed that too. It's very similar to a Wal-Mart press release. I've always said that Toyota is the Wal-Mart of car companies.

CArve that into stone, it's true on SO may levels.

[Camino LS6]

If pressed, I'd bet that Toyota has half a page of "qualifiers" that allow them to say that they are making money on the Tundra. There is simply no way that they could begin to see a profit on the Tundra this year even if they sold 200k of them at full sticker. The cost of development and building the plants is enough to keep them in the red for quite some time. With their dismal peformance in the market lately it doesn't look good for much of a return on investment.

[Sixty8panther]

Right.

R&D alone will not be offset in the first model year unless they had 1964.5 Mustang style sales on a 1964.5 Mustang style prouct.

But Toyota has more of a 1988 Regal style product and the sales are not stellar.

[toesuf94]

Tokyo

Owns

Your

Old

Town

A$$holes!

This will be the bumper sticker I will print up and put on my car...'cause it is true.

and the Tundra is selling here, but not at a great clip. The lots look like they are storing firewood for winter - all stacked up.

[FUTURE_OF_GM]

Tokyo

Owns

Your

Old

Town

A$$holes!

This will be the bumper sticker I will print up and put on my car...'cause it is true.

and the Tundra is selling here, but not at a great clip. The lots look like they are storing firewood for winter - all stacked up.

I'd buy it...

BTW, I'll us a line from one of my favorite movies to sum up how I feel about this little PR blip:

"I'll believe that when me $h! turns purple and tastes like rainbow sherbert!"

Bonus points to anyone who can guess the movie.

[PurdueGuy]

I'd buy it...

BTW, I'll us a line from one of my favorite movies to sum up how I feel about this little PR blip:

"I'll believe that when me $h! turns purple and tastes like rainbow sherbert!"

Bonus points to anyone who can guess the movie.

dang it, I know I've heard that before, but can't remember where.

[toesuf94]

Super Troopers...I googled it.

[Z-06]

May be :twocents: / truck. That is still making money.

[the_yellow_dart]

I'd buy it...

BTW, I'll us a line from one of my favorite movies to sum up how I feel about this little PR blip:

"I'll believe that when me $h! turns purple and tastes like rainbow sherbert!"

Bonus points to anyone who can guess the movie.

That's one of those movies that I've seen so many times I could probably finish most scenes, given the first line.

One of my friends always uses the nickname Ramrod.

[RJB]

I've seen 2 Tundras on the road since they have been out...2 you hear me!! GM owns Michigan's truck market and always will.

[toesuf94]

Unfortunately I see 3-5 a day around here...mostly due to the fact the Toyota Motor Credit office is a mile from my house. Ugly buggers. I cannot say I have seen any of them HAULING anything larger than the plastic bags from Wal-Mart.

[Drew Dowdell]

If I'm in the Avalanche and I see one with a younger guy driving, I try to goad them into racing me... I know they'll win.....till they snap a camshaft.

[toesuf94]

I bet that is wonderful for that Toyota Gas Mileage as well...I just give them the Tundra Salute...I Laugh at them and point - with my middle finger!

[Flybrian]

Some guy down the street traded his older Tundra for this new one...and put Buick portholes on it. Again, not the JC Whitney square-shaped generics, but Buick aftermarket tack-ons.

I'm actually not so sure what I find less attractive anymore - Tundras or vehicles that don't deserve portholes with portholes.

Oh, I nearly forgot. Its a TRD Tundra, so he has a personalized plate reading TRDMAN. I gotta take a pic sometime.

[DavidCL2]

This proves my theory that the chassie on the tundra is made of bambooo!!! I would be pissed if my 6 month old truck lost 1/3 of its value becuase of incentives, even more so considering the incentives are there because of quality issues!

Edited September 18, 2007 by DavidCL2

[roadwarrior]

If they really ARE making money (even on a vehicle-above-cost basis), then it just goes to show how badly Toyota is fleecing anyone who buys one of their cars. $9K discounts and still profitable? I wish I had those kinds of economies working in my favor!

[FUTURE_OF_GM]

My question is this:

How much longer until they're in bad shape?

I mean, the Tundra might be making money, but probably isn't giving them the return they wanted. And the Prius is probably in the same boat...

I'm sure we'll never see this sort of thing capsize Toyota, but I'm hopeful.

[SingleStylish]

Honestly, is anyone shocked it is making money??? Toyota made a total of two frames for this truck both of which are utilizing 20 year old inexpensive construction methods. Furthermore, the people assembling them aren't paid THAT much considering the Detroit 3 have been saddled with UAW stuff (not looking for an argument just stating truth). Anyone who has spent a measurable amount of time in this truck knows that the materials are not typical Toyota top notch. This is no suprise, the truck was literally designed around discounting and over designed to compensate for it. The only REAL reason people choose to buy them are A) design; B) Toyota's reputation for quality; C) the deal; D) the 5.7L that clearly is intended to speak to old 350 owners.

I for one am not suprised it is making money.

[AxelTheRed]

Some guy down the street traded his older Tundra for this new one...and put Buick portholes on it. Again, not the JC Whitney square-shaped generics, but Buick aftermarket tack-ons.

I'm actually not so sure what I find less attractive anymore - Tundras or vehicles that don't deserve portholes with portholes.

Oh, I nearly forgot. Its a TRD Tundra, so he has a personalized plate reading TRDMAN. I gotta take a pic sometime.

What a jackass.

[Sixty8panther]

"Turd Man"

"Ass Man" is much better!